Question

21. If you sell your product for $18.50 per unit and your fixed costs per unit...

21.

If you sell your product for $18.50 per unit and your fixed costs per unit are $3.50, what is your contribution margin per unit?

Select one:

a. $4.00

b. $15.00

c. $3.50

d. $11.00

e. None of the choices is correct or cannot be calculated.

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Homework Answers

Answer #1

e. None of the choices is correct or cannot be calculated.

Contribution margin = Selling per per unit - variable cost per unit

in above case only SP ie 18.5 is given but information about variable cost per unit is missing

hence contribution margin per unit cannot be calculated

I hope my workings are enough to understand
Thanks in advance for giving me positive ratings
for any clarification feel free to comment on it
May God bless you and have a wonderful day
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